According to Capital Float, the latest funds raised will be used to increase its geographic footprint, improve customer experience and launch a new set of innovative credit products for SMEs across India.

The company also plans to invest in scaling up its hybrid marketplace model and deepening technology integrations with partner financial institutions.

Capital Float was founded in 2013 by Sashank Rishyasringa and Gaurav Hinduja. Its offerings include e-commerce seller financing, term loans, receivables financing and commercial vehicle loans.

The NBFC has disbursed over Rs 1,000 crore worth of loans to over 6,000 merchants, the company plans to take this number to 10,000 loans by the end of this fiscal. That would mean giving out loans worth Rs 450 crore every month, as stated by the company. It claims to have less than 1% default on loans and gives credit to its proprietary credit analytics software.

Earlier, the company had raised Rs 15 crore from Mahindra & Mahindra Financial Services by allotting non-convertible debentures (NCDs) and Rs 17 crore from IFMR Capital Finance through NCDs in December 2017.

Nick Shalek (Partner) from Ribbit Capital, said, “We have been impressed by the Capital Float team as the company has achieved remarkable growth by delivering innovative products to small businesses and providing attractive returns to investors on the platform. With this financing, Capital Float is further cementing its lead as the top technology-enabled NBFC in India, and we are thrilled to support the company’s journey.”

Ribbit Capital has been investing in India since 2014. The venture firm had invested in Policybazaar.com; expense management application Money View; and ZestMoney, a consumer lending startup, among others.

In recent times, digital lending startups have been hitting right on the money, and they are easing the process for SMEs to secure funding for operational expenses and growing their market.